The hourly labour cost in Cyprus increased by 5.6 per cent in the fourth quarter of 2024, according to preliminary data published this week by the Cyprus Statistical Service (Cystat).

This rise reflects ongoing pressure in the labour market, as well as the potential impact of broader economic conditions on wages and employer contributions.

What is more, the report showed that both wages and employer contributions increased during this period.

Specifically, wages and salaries per hour worked rose by 5.3 per cent, while non-wage costs, which include employer contributions, increased by 7.0 per cent compared to the same period in the previous year.

These developments suggest that, in addition to wage increases, employers are increasingly burdened by mandatory employer contributions, which is contributing to the overall employment cost.

When examining seasonally adjusted data, the total labour cost showed a quarterly increase of 1.3 per cent compared to the third quarter of 2024.

Wages and salaries also rose by 1.3 per cent, while non-wage costs increased by 1.2 per cent.

These increases further confirm the overall upward trend in labour expenses, despite any seasonal fluctuations in employment.